Here we discuss different types of trend analysis indicators that can help you determine the strength of the trend and to know whether you should be buying or selling. By identifying strong trends, you may reduce risk and increase your profit potential.
Category Archives: Trend Analysis
Spot price reversals with the SMI indicator
In this Spotlight post we’re looking at the Stochastic Momentum Index (a.k.a. the SMI indicator) by William Blau. The general idea behind stochastic studies is to use momentum falloffs to predict price reversals. To paraphrase George Lane, the developer of the original Stochastics study, one may compare the phenomenon to a rocket going up in…
Regression Channel REVISITED – with Bloodhound Tutorial
The LizardIndicators Linear Regression Channel indicator comes with significant improvements vs. the standard version that comes with NinjaTrader 8.
Coral Trend Slope vs. Volatility Channel
The Coral Filter is a linear combination of moving averages, all obtained by a triple or higher order of exponential smoothing. To learn more about the Coral Filter, a.k.a. Coral Trend indicator, watch the video or continue reading below: As the name implies, it is a tool to determine trend bias, filtering out setups that…
The ADXVMA Indicator and Adaptive Moving Averages
The ADXVMA indicator is an adaptive moving average and automatically responds to price volatility. Specifically, it follows price closely during trending markets whereas it is less sensitive during sideways action. To learn more about the ADXVMA indicator and adaptive moving averages, watch the video or continue reading below: Moving Averages vs. Adaptive Moving Averages Originally,…
SuperTrend: A Versatile Stop Loss
The SuperTrend indicator is an enhancement of the Maximum Adverse Excursion (MAE) concept, as introduced by John Sweeney in the mid-nineties. It is most commonly applied as a trailing stop indicator, adjusting to both prices and volatility. When volatility is high, the trailing stop is further away from prices. Conversely, when volatility is low, the…
The Arnaud Legoux Moving Average: Information Value vs. Information Confidence
In this Spotlight we’re looking at the Arnaud Legoux Moving Average (ALMA) which was developed as an alternative to conventional moving averages. Specifically, Legoux sought to create a smooth moving average without compromising responsiveness. To learn more, check out the video or continue reading below. The ALMA indicator is a linear filter whose coefficients are…
Trigger Lines : Cross vs. Thrust
In this Indicator Spotlight, we’re looking at the Trigger Lines indicator which can be used as a trend filter. The Fast Trigger is a LinReg Indicator, similar to the standard NinjaTrader version. The signal line is calculated by applying an EMA to the linear regression indicator. Therefore, an identical plot can be achieved by simply…
The Wilder Volatility Stop
When used with time based bars, the Volatility Stop indicator adjusts to the current market environment. Specifically, it allows for stop widening when volatility increases and tightening when it decreases.
Using the Heikin Ashi Indicator for Determining Market Trends
The Heikin-Ashi indicator (sometimes spelled Heiken Ashi) is used for determining market trends, identifying short/long biases.
The Weekly VWAP Calculation
In this Indicator Spotlight, we’re looking at “The Current Week VWAP”. Many are already familiar with the current day VWAP, available from our indicator library and / or the Order Flow VWAP that comes with NinjaTrader 8. The Weekly VWAP, is a nice supplement to this analysis as it allows you to review trend and overbought/-sold information in a higher timeframe.